Vivo – Dutch Uncles

Can Branding in IPL be the Game Changer for Indian Start-ups

Aakash Sharma — Mon, 22 Mar 2021 00:35:05 +0000

With a value of $ 5.7 billion, the Indian Premier League (IPL) has become one of the most valuable Indian brands to be built in a short time span. The importance of branding in IPL lies in more than just the eight-week long event – in the impact the game has on the audience.

The Indian Premier League has been a success that goes beyond the commercial space. It is a new cricket brand and a new entertainment brand, which is now competing with conventional modes of entertainment.

Many experts have written about it and it is the subject of case studies taught in B schools. Along with all its local flavours, it is connected to pan-India audiences. Globally, the IPL has always established India as the centre of cricketing power.

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IPL is contributing significantly to promote the Atmanirbhar Bharat movement and allowing Indian companies to develop their brands.

Branding in IPL – A dream destination for Indian start-ups

The Indian Premier League of Cricket (IPL) ushered a huge brand consisting of games, players and famous stars. For sports fans, this is a long and unexpected adventure. According to Brand Finance’s report, the league ranks sixth among other sports leagues in the world in valuation and strategic recommendations at $5.7 billion.

The event has turned into a mega platform for businesses to showcase their mettle. Interestingly, there are four start-ups from the digital world among the top sponsors in this season’s IPL. Fantasy sports brand Dream11 is one of the main sponsors, and it purchased half-price ownership of Chinese brand Vivo’s rights for approximately Rs 222 crore in 2020. Besides, the educational technology start-up Unacademy was also the official partner of IPL 2020.

Branding in IPL is a New Niche for Unicorn Start-Ups

COIVD-19 suspended sports events and recreational activities globally, and the IPL also lost its vigour in ultra-rich sponsors and brand endorsements. Before the pandemic hit, DLF, Pepsi and Vivo were the main sponsors of IPL. While Vivo withdrew its support amid geopolitical strain between India and China, sponsorship support from other groups also receded.

Although the pandemic directly affected sports sponsorship, the championship gained momentum thanks to new start-ups occupying the place as advertisers and sponsors. Despite the economic downturn, IPL still is one of the largest sports leagues in the world. And effectively, it is a well sought-after brand marketing platform. The sponsors of the IPL 2020 passed the Rs 500 crore milestone. Backed by start-ups like Unacademy, Dream11, Byju’s and CRED, it is clear that IPL is now open to small and medium-sized businesses, along with large companies.

Start-Ups Branding in IPL are Leveraging Beyond Sponsorships

In the age of the internet, digital advertising has become more important than outdoor advertising. And companies use IPL for marketing their brand to the people. IPL is an excellent opportunity for business as it coincides with the most celebrated event in India that is cricket. In IPL 2019, advertising spending increased 100% as 246 brands advertised in the event.

The COVID-19 pandemic has increased digital consumption by enormous leaps and bounds. As a result, online platforms have opened up new avenues for advertisers to reach consumers. Experts believe that companies choose IPL marketing because most people work from home and spend a lot of time online. And most of them watch IPL matches on streaming platforms and TV.

Going in the Future, What’s in it for the Businesses?

The IPL is so big that even the coronavirus outbreak did not stop its progression. For security reasons, the 2020 season of the game was held in the United Arab Emirates. It helped the entire IPL spectrum to win a large audience. IPL events will continue to happen in the future no matter what.

To gain worldwide attention and popularity, the slogan “Vocal for Local” has bolstered national brands’ confidence, and start-ups have seen tremendous momentum in their prospects. IPL’s international appeal is seen as an opportunity for companies to stand out in the world market. It can be said that with the help of IPL, attitudes towards national brands and Indian companies are changing.

IPL is contributing significantly to promote the Atmanirbhar Bharat movement and allowing Indian companies to develop their brands. With its collectively engaging and procedural cricket games that are most popular among Indians, IPL has become an emerging market that celebrates creativity and innovation and attracts companies and digital start-ups.

The post Can Branding in IPL be the Game Changer for Indian Start-ups appeared first on Dutch Uncles.

Dream11 is Official Partner in IPL 2021: What can Start-ups Learn?

Aakash Sharma — Sat, 20 Mar 2021 02:30:08 +0000

After almost two decades of prominent sponsorships for cricket, the big companies have moved aside to allow Indian start-ups to take over the sponsorship labels. Indian start-ups are offering to be an IPL sponsor to increase their brand’s acclaim and market share in the country. IPL Title Sponsorship is the ideal opportunity to expand a brand’s global presence.

Dream11 opened great doors in the title IPL Sponsor race for start-ups

For IPL 2021, Dream11 has reappeared as the official tournament partner. Although Dream11’s attempt to retain the title sponsorship of the Indian Premier League failed when Vivo returned to the league, it still has given a way to other newly formed Indian companies and start-ups to enter the major leagues. The primary fantasy company will continue to register as the Official Fantasy Partner at IPL 2021.

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Start-ups investing in India's unifying religion that is cricket have shown that marketing is not just about making money. It's also about making your presence felt in the market.

Vivo’s stumble as IPL sponsor

In 2020, when anti-Chinese rhetoric rocked India, Chinese smartphone brand Vivo pulled out of the IPL. When Vivo pulled out of IPL 2020, it transferred the IPL sponsorship rights to interested parties. The fantasy sports platform Dream11 and EdTech giant Unacademy were the first Indian start-ups to obtain rights for the first time in the more than ten-year history of the IPL tournament.

The Board of Control for Cricket in India (BCCI) had to terminate the Rs 440 crore per year contract with the Chinese smartphone giant. The outcome of the Vivo-IPL deal was sparked by anti-Chinese sentiment across the country following the China-India conflict in the Galwan Valley in June 2020, when Chinese troops killed 20 Indian soldiers.

Vivo has yet again captured the Title IPL Sponsor

In 2020, Dream11 and Unacademy presented their sponsorship bids to Vivo. Dream11 became the title sponsor of IPL 2020 and reserved a place for itself in the “Outstanding Sponsor Category”. In 2021, however, Dream11 will not be the title sponsor, but the official fantasy partner for IPL 2021.

Dream11 tried to retain the title sponsorship of IPL 2021 and even made an offer to Vivo. But Vivo did not implement the agreement because the annual price of Rs 250 crore for sponsorships rights was far below its expectations.

Start-ups are investing heavily in IPL Sponsor race

In addition to Dream11, BCCI has also tied up with Unacademy and CRED as official partners. Tata Motors has completed its three-year relationship with IPL and is expected to renew its contract. Upstox, the digital stockbroker start-up, and online investment platform Groww, also became official partners of the Indian Premier League (IPL) 2021. It is clear that cricket remains the best choice for the marketing strategies of start-ups.

According to the Pitch Madison advertising report released in February 2021, educational technology company Byju’s advertisement budget was between Rs 400-500 crore last year, while Dream11’s was between Rs 350-400 crore.

What avenues have start-ups opened for others to follow?

Start-ups investing in India’s unifying religion that is cricket have shown that marketing is not just about making money. It’s also about making your presence felt in the market. IPL sponsorship is an excellent opportunity for businesses, either new or established, to expand their global reach.

The Indian Premier League is the most successful cricket league in the world. More than 70 games are played in 50 days, and international and Indian cricketers compete against each other every day wearing jerseys with business’s labels on them.

With the eyeballs of hundreds of millions of people fixated on the TV and OTT platforms that stream live matches, sponsor businesses get exactly what their brand needs to produce an image that viewers can relate to and feel connected with. In essence, IPL offers a variety of investment opportunities to make it relevant to brands of different categories, and that is why start-ups are roping in on the opportunity.

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India’s Short Term Memory: All you need to know about Vivo

Naina Sood — Fri, 19 Mar 2021 02:35:04 +0000

Do we, as Indians, have a short-term memory? No way is this article intended to challenge the patriotism of our fellow Indians, but somewhere in a high-profile board meeting, a group of top executives are jumping in elation, saying—’We are back!’.

Let’s rewind back a little.

Following a tension at Indo-China border in May last year, a statement released by Swadeshi Jagaran Manch shook up Rs 2,199-crore four-year deal between BCCI (Board of Control for Cricket in India) and Chinese mobile manufacturer

Vivo. “Nothing is above the nation’s security and dignity. The IPL Governing Council has shown its utter disrespect to the soldiers martyred by the most heinous act of Chinese,” the statement released by the Manch read.

Six months later, the deal is back on the table! Vivo is once again the official title sponsor of IPL 2021. What does this mean? Do we have a short-term memory or majority of us actually do not care if the brand sponsoring a cricket tournament is Chinese or Swadeshi? Or, should we applaud a well-thought-out strategy of foreign brands of crossing temporary rough patches and slide back into public-eye business? Let’s find out:

‘One Minute of Patience, 10 Years of Peace’

The Greek proverb will resonate well with Chinese mobile manufacturer Vivo which got into controversy twice and came out successfully.

Besides IPL, Vivo had come under public scanner in June 2020 after more than 13,000 Vivo phones were found to have the same International Mobile Equipment Identity (IMEI). A case of fraud was registered against the company in Meerut, Uttar Pradesh. Few months later, Vivo had a clean chit in its hands and was back with business as usual. How did Vivo duck both these controversies and bounce back?

The news was all over the media for days, with tone of ‘shocking security breach’, ’terrorist threats’, ‘anti-china’ ringing the lanes of the Parliament. The first and the foremost thing Vivo did in both the cases was lay low to cushion the blow. There were two ways the company could have countered the negative narative about Chinese brands – One, by challenging those asking for a boycott to explain their stand or by letting it slide. Vivo chose the latter.

During the IMEI case, Vivo never came out with a clarification. It simply pumped up its ‘IMEI Authentication -Vivo India’ tag on google searches and turned the narrative into how customers should always verify the IMEI number before buying a smartphone. Few months later, the company got a clean chit and the issue never came up. The anti-China sentiment was at its peak last year and subsided by the end of December.

The ‘minor blip’ did not really lead to a decrease in the brand’s popularity and demand. Rather, Vivo managed to break past Samsung to be the second most sold smartphone brand after Xiaomi in 2020. It did suffer a 36% drop in shipments in the second quarter of 2020, Demand picked up in the final quarter during India’s festive season that culminated with Diwali in November.

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Besides IPL, Vivo had come under public scanner in June 2020 after more than 13,000 Vivo phones were found to have the same International Mobile Equipment Identity (IMEI).

Aamir Khan to the Rescue

In June 2020, the company was planning to launch the new phone V19. Keeping the uncertainty in mind, the company decided to cautiously build the product, starting off slowly with digital and Below the Line marketing before going national on television, with ambassador Aamir Khan. The order of the day is to launch TV commercials on day one, but the company modified its strategy accordingly.

Vivo leveraged its two-year-old association with Aamir Khan to build a more compelling pull for the brand. We all know that if he endorses something, then it must be good!

Vivo has a strong offline presence. While waiting for the anti-China sentiment to subside, the company aggressively adopted a new offline retail strategy to sell smartphones at the customer’s doorstep. This was also in the wake of Covid restrictions.

Vivo: Yes! We Make in India

Be it in terms of the investments made in manufacturing and marketing the product, almost all the Chinese companies undertook the reputation-building exercise by joining the ‘Make in India’ narrative. Vivo created a PR strategy for becoming an ‘international Local Organisation’ and time and again laid emphasis on the fact that their handsets are made in India. They even unveiled a new ‘Make in India’ logo which was, and continues to be, printed on the boxes of all Vivo devices being sold in the country.

A press release was issued in May by the company, saying, “We, at Vivo India, have been aligned to the ‘Make in India’ initiative since the beginning. The new logo reiterates our commitment to make India a manufacturing hub and reinstate our mission of being an ‘international local organisation’.

Post the IPL controversy, Vivo also came out with news to raise its localisation level to 40% by 2021.

It’s Business as Usual Vivo is back in the driver’s seat with the IPL 2021 sponsorship as the brouhaha settles and so are all the other Chinese brands who were hit by the common wave. The company plans to launch three smart phones by the end of March itself, besides 6-7 others in 2021 besides opening its 650th exclusive store by year end.

It all boils down to the common man, who, in reality, never really bothers to check the nationality of the brand in use. To add to that, all publicity at the end of the day is good publicity if handled smartly!

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